Texas 2015 - 84th Regular

Texas House Bill HB3625 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R5981 EES-D
2	2	By: Turner of Harris, Simmons H.B. No. 3625
3	3	Substitute the following for H.B. No. 3625:
4	4	By: Oliveira C.S.H.B. No. 3625
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to requirements for certain service contracts.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 1304.156(a), Occupations Code, is
12	12	amended to read as follows:
13	13	(a) A service contract marketed, sold, offered for sale,
14	14	issued, made, proposed to be made, or administered in this state
15	15	must:
16	16	(1) be written, printed, or typed in clear,
17	17	understandable language that is easy to read;
18	18	(2) state the name and address of the provider;
19	19	(3) state the purchase price of the contract and the
20	20	terms under which the contract is sold;
21	21	(4) state the terms and restrictions governing
22	22	cancellation of the contract by the provider or the service
23	23	contract holder before the expiration date of the contract;
24	24	(5) identify:
25	25	(A) any administrator and any registration
26	26	number issued to the administrator under this chapter;
27	27	(B) the seller; and
28	28	(C) the service contract holder, if the service
29	29	contract holder provides the holder's name;
30	30	(6) state the amount of any deductible;
31	31	(7) specify the products and services to be provided
32	32	under the contract and any limitation, exception, or exclusion;
33	33	(8) specify any restriction governing the
34	34	transferability of the contract;
35	35	(9) state the duties of the service contract holder,
36	36	including any duty to protect against any further damage and any
37	37	requirement to follow the instructions in the owner's manual; [and]
38	38	(10) state whether the contract provides for or
39	39	excludes consequential damages or preexisting conditions, if
40	40	applicable; and
41	41	(11) state that the administration of the contract is
42	42	governed by Chapter 1304, Occupations Code (Service Contract
43	43	Regulatory Act).
44	44	SECTION 2. Subchapter D, Chapter 1304, Occupations Code, is
45	45	amended by adding Section 1304.157 to read as follows:
46	46	Sec. 1304.157. ADDITIONAL REQUIREMENTS FOR CERTAIN SERVICE
47	47	CONTRACTS. (a) In this section, "motor vehicle" has the meaning
48	48	assigned by Section 501.002, Transportation Code.
49	49	(b) In addition to the requirements in Section 1304.156, a
50	50	service contract for a motor vehicle must:
51	51	(1) state the effective date and duration of the
52	52	contract and, if the contract is for a duration of less than one
53	53	year, provide for the automatic extension of the contract if the
54	54	motor vehicle is undergoing repair, replacement, or maintenance by
55	55	the provider on the contract's expiration date;
56	56	(2) specify the obligations of the provider and the
57	57	additional services that the provider will provide;
58	58	(3) specify limitations on the obligations of the
59	59	provider, including repairs, remedies, and services relating to
60	60	certain parts, components, defects, malfunctions, and conditions
61	61	that are not covered by the contract;
62	62	(4) specify the nature and frequency of the duties of
63	63	the service contract holder and the consequences of the service
64	64	contract holder's failure to comply with those duties;
65	65	(5) identify:
66	66	(A) the legal name and business name of the
67	67	provider;
68	68	(B) the mailing address of the provider;
69	69	(C) the persons who are authorized by the
70	70	provider to provide services under the contract; and
71	71	(D) the name or title and address of each agent,
72	72	employee, or department of the provider with responsibility for
73	73	performing the provider's obligations under the contract;
74	74	(6) provide a step-by-step procedure for the service
75	75	contract holder to follow in order to obtain products and services
76	76	under the contract;
77	77	(7) specify the method by which the service contract
78	78	holder must notify the provider of the need for products and
79	79	services under the contract;
80	80	(8) specify whether in-home repair, replacement, or
81	81	maintenance is available under the contract and, if not:
82	82	(A) whether the cost of transporting the motor
83	83	vehicle for repair, replacement, or maintenance will be paid by the
84	84	provider; and
85	85	(B) the place where the motor vehicle must be
86	86	delivered for repair, replacement, or maintenance or a toll-free
87	87	telephone number that the service contract holder may call to
88	88	obtain that information; and
89	89	(9) specify all fees, charges, or other costs that the
90	90	service contract holder must pay to obtain products and services
91	91	under the contract.
92	92	SECTION 3. (a) Section 1304.156, Occupations Code, as
93	93	amended by this Act, and Section 1304.157, Occupations Code, as
94	94	added by this Act, apply only to a service contract sold or issued
95	95	on or after January 1, 2016. A service contract sold or issued
96	96	before that date is governed by the law in effect on the date the
97	97	contract was sold or issued, and the former law is continued in
98	98	effect for that purpose.
99	99	(b) Notwithstanding Subsection (a) of this section, a
100	100	service contract sold or issued before January 1, 2016, may not be
101	101	extended or renewed at the end of the service contract term unless
102	102	the contract complies with Sections 1304.156, Occupations Code, as
103	103	amended by this Act, and, if applicable, Section 1304.157,
104	104	Occupations Code, as added by this Act.
105	105	SECTION 4. This Act takes effect September 1, 2015.